China to resume fertiliser, rare earth supplies to India

Signalling a thaw in economic relations, China has assured India that it will address pressing trade concerns, particularly regarding the import of rare earth minerals and fertilisers.

At a meeting on Monday, Chinese Foreign Minister Wang Yi told External Affairs Minister S Jaishankar that Beijing would resume supplies of fertilisers, rare earth minerals and tunnel boring machines, sources said.

Beijing had earlier halted Indian imports of fertilisers for nearly a year, a significant disruption given that China supplies nearly 30 per cent of India’s fertilisers. During the meeting, Jaishankar raised the issue of supplies for rare earths and key fertilisers like urea, NPK and DAP.

The matter of rare earths had also been flagged in June and was subsequently discussed in a meeting between Foreign Secretary Vikram Misri and China’s Vice Foreign Minister Sun Weidong. Both nations had previously agreed to hold functional dialogues in economic and trade domains to resolve such specific issues.

China has restricted exports of rare earth magnets in retaliation against the US tariff hike. It is using the commodity as a bargaining chip in the trade war, impacting other dependent countries, including India. These magnets are vital for electronics, electric vehicles and industrial equipment.

During his opening remarks at the meeting, Jaishankar said as neighbouring nations and major global economies, the India-China relationship had many dimensions. “It is also essential in this context that restrictive trade measures and roadblocks are avoided," he said.

‘No change in govt stance on Taiwan’

Chinese media on Tuesday claimed India “has accepted Taiwan as part of the One China policy”

Official sources in India, however, said there was no change in New Delhi’s position

Jaishankar told Wang that India maintained diplomatic presence in Taiwan for economic and cultural purposes, without altering its stance